Quotes in the global scrap market fell slightly due to Ramadan

Last week (April 9-16), scrap metal quotations decreased in most regional markets due to weakening demand for finished products and the onset of the month of Ramadan in Muslim countries. Due to the fall in demand, quotations of scrap HMS 1&2 (80:20) in the Turkish market decreased by $5 to the level of $425-435/mt CIF. In the previous week (April 2-9), the range of quotations was at the level of $430-440/mt CIF.

In Turkey, the number of transactions has decreased as most of the importers have significant stocks and do not intend to increase activity in Ramadan. Individual factories continue to purchase small quantities of raw materials for current needs. The greatest demand was for scrap from the EU with the possibility of prompt deliveries.

In Asia, steel prices remained unchanged. The impact of Ramadan in Asian countries is not as significant as in Turkey, so some importers continued to buy raw materials. However, the increase in supply from the United States, which is experiencing difficulties in selling scrap in Turkey, does not allow traders to continue their bullish play. Scrap HMS1 was priced at $430/mt CIF.

In the coming month, export quotations for scrap metal will gradually decline against the backdrop of weakening demand for long products, lower prices for iron ore and increased supply from suppliers from the US and the EU. Quite high stocks of raw materials from the largest importers will also have a negative impact on prices. The forecasted range of scrap prices for the current week is $425-435/mt CIF.

Source: "Ukrpromvneshexpertiza"